Algos Gone Wild? AI Is Powering Market Moves Authored by Michael Lebowitz via RealInvestmentAdvice.com, On May 6, 2010, the US stock markets dropped nearly 10% within minutes. What would be called a “flash crash” wasn’t caused by news, economic data, or a Fed policy decision. According to the U.S. Commodity Futures Trading Commission (CFTC), a large sell order on E-Mini S&P 500 futures, executed by a mutual fund and triggered by an algorithm, was the culprit. Furthermore, the sell order triggered other high-frequency trading (HFT) algorithms to follow suit and sell. Before the 2010 Flash Crash, algorithmic trading was limited.… — Continue at ZeroHedge News : Read More
